--- title: "Guotai Junan Securities: The high enthusiasm for AI applications in medicine is worth laying out; traditional mainline quarterly reports may welcome a reversal" type: "News" locale: "en" url: "https://longbridge.com/en/news/227710449.md" description: "Guojin Securities released a research report indicating that with the advancement of artificial intelligence technology, AI applications in the pharmaceutical and healthcare sectors will accelerate. After four years of adjustment, the traditional pharmaceutical investment theme has reached a bottom in valuation and performance, with favorable policies frequently emerging. The pharmaceutical sector is expected to welcome an overall reversal in 2025. The number and quality of new drug approvals are improving, and the medical device and bioproduct sectors also show rapid growth potential" datetime: "2025-02-10T08:11:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/227710449.md) - [en](https://longbridge.com/en/news/227710449.md) - [zh-HK](https://longbridge.com/zh-HK/news/227710449.md) generator: "portal-rs" --- # Guotai Junan Securities: The high enthusiasm for AI applications in medicine is worth laying out; traditional mainline quarterly reports may welcome a reversal According to the Zhitong Finance APP, Guojin Securities released a research report stating that with the development and progress of artificial intelligence technology, AI is continuously making new advancements in empowering the pharmaceutical and medical sectors and promoting industry upgrades. The application of artificial intelligence in the pharmaceutical and health fields is expected to enter an accelerated development stage. In terms of traditional pharmaceutical investment themes, the pharmaceutical sector has been adjusting for four consecutive years, with valuations, performance, and funding all at the bottom. Recently, policies such as the introduction of the Class B medical insurance catalog within the year, the implementation of supportive policies for innovative drugs, and the advance payment of medical insurance have been frequently announced, indicating clear signs of reversal in market policy expectations and corporate operational prosperity. The pharmaceutical sector is expected to welcome an overall reversal in 2025, including reversals in policy, performance, and funding. ## Guojin Securities' main viewpoints are as follows: **Pharmaceutical Sector:** From the quantity and quality of new drug approvals in China over the past few weeks, it can be seen that the pace of commercialization of Chinese innovative drugs and the entry of internationally leading new drugs into China is accelerating. Nuance Pharma announced that ensifentrine has been approved by the Macao Special Administrative Region Drug Administration for the maintenance treatment of adult chronic obstructive pulmonary disease (COPD). Following the approvals of Lecanemab and Tagraxofusp, Kelun-Biotech's biosimilar of rituximab (A140) was also approved for marketing this week, with the company expected to achieve significant commercialization results in 2025. **Medical Devices:** Boston Scientific released its 2024 performance preliminary report, indicating that its electrophysiology business is rapidly developing, driving the company's overall performance to show high growth throughout the year. Similarly, several domestic companies, including Huatai Medical, have launched innovative PFA electrophysiology products, and the penetration rate of pulse ablation technology in the domestic atrial fibrillation treatment field is expected to increase rapidly. Domestic manufacturers are expected to gradually gain a leading position in the new round of technological innovation in electrophysiology. **Biologics:** The GLP-1 blockbuster is expected to perform well in 2024, with Novo Nordisk's semaglutide maintaining rapid growth. The combined revenue of Ozempic, Rybelsus, and Wegovy in 2024 is expected to reach DKK 20.1849 billion (approximately USD 28 billion); Eli Lilly's tirzepatide has maintained rapid growth since it was first approved by the FDA in May 2022, with global sales of tirzepatide expected to reach USD 16.466 billion in 2024, and the global GLP-1 sector continues to grow rapidly. **Pharmacies:** The retail scale of pharmaceuticals is expected to see a slight increase in 2024, with the proportion of prescription drugs further rising. The number of pharmacy closures in the fourth quarter of 2024 is expected to increase further compared to the previous quarter, indicating ongoing industry clearing. In terms of domestic influenza, according to data from the National Center for Disease Control and Prevention, the incidence of influenza in both northern and southern regions is rebounding in the fifth week of 2025. **Medical Services:** Performance forecasts for sector targets are being released, with a focus on marginal changes. Aibo Medical's performance forecast indicates that all business lines are maintaining high growth; meanwhile, Align Technology's revenue in 2024 is expected to see a slight year-on-year increase, with global shipments around 2.5 million cases. In the medical aesthetics sector, AbbVie announced its financial performance for the full year and fourth quarter of 2024, with revenue from its beauty product portfolio at USD 5.176 billion, a year-on-year decrease of 2.2%. Botox cosmetic has seen some growth, but Juvederm sales have declined **Investment Recommendations** In terms of investing in pharmaceutical AI, it is recommended to focus on three major areas: 1) medical devices and diagnostic imaging; 2) drug design and development; 3) internet healthcare and big health. As for the main line of traditional pharmaceutical investment, as long as the market fully confirms that policy expectations are beginning to reverse, the pressure on performance has already been fully anticipated, and the pharmaceutical sector is expected to start the reversal process in advance. It is recommended to increase the allocation ratio in the pharmaceutical sector. In terms of sector and company selection, it is suggested to focus on two main lines: ① the top-down opportunities in the innovative drug sector going overseas and domestic expansion; ② the bottom-up opportunities in the left-side sectors (such as medical devices, traditional Chinese medicine, pharmacies, services, CXO, etc.) where individual stocks are experiencing a reversal in prosperity. **Key Targets** Kelong Botai (06990), Renfu Pharmaceutical (600079.SH), Huadong Medicine (000963.SZ), Te Bao Biological (688278.SH), Yifeng Pharmacy (603939.SH), Xinmai Medical (688016.SH), Taiji Group (600129.SH), Mindray Medical (300760.SZ), Meinian Health (002044.SZ), WuXi AppTec (603259.SH), etc. **Risk Warning** Exchange rate risk, domestic and foreign policy risk, investment and financing cycle fluctuation risk, risk of mergers and acquisitions integration falling short of expectations, etc ### Related Stocks - [600721.CN](https://longbridge.com/en/quote/600721.CN.md) - [002727.CN](https://longbridge.com/en/quote/002727.CN.md) - [600998.CN](https://longbridge.com/en/quote/600998.CN.md) - [603939.CN](https://longbridge.com/en/quote/603939.CN.md) - [06990.HK](https://longbridge.com/en/quote/06990.HK.md) - [688016.CN](https://longbridge.com/en/quote/688016.CN.md) - [600079.CN](https://longbridge.com/en/quote/600079.CN.md) - [688050.CN](https://longbridge.com/en/quote/688050.CN.md) - [688617.CN](https://longbridge.com/en/quote/688617.CN.md) - [BSX.US](https://longbridge.com/en/quote/BSX.US.md) - [000963.CN](https://longbridge.com/en/quote/000963.CN.md) - [600109.CN](https://longbridge.com/en/quote/600109.CN.md) - [ABBV.US](https://longbridge.com/en/quote/ABBV.US.md) - [LLY.US](https://longbridge.com/en/quote/LLY.US.md) - [02359.HK](https://longbridge.com/en/quote/02359.HK.md) - [159992.CN](https://longbridge.com/en/quote/159992.CN.md) - [600129.CN](https://longbridge.com/en/quote/600129.CN.md) - [562390.CN](https://longbridge.com/en/quote/562390.CN.md) - [002044.CN](https://longbridge.com/en/quote/002044.CN.md) - [300760.CN](https://longbridge.com/en/quote/300760.CN.md) - [688278.CN](https://longbridge.com/en/quote/688278.CN.md) ## Related News & Research - [Singapore medicine group Eu Yan Sang's founding family sells bungalow for $31M](https://longbridge.com/en/news/298167922.md) - [Cloud snail-mail service Docmail enters third day stuck in the outbox](https://longbridge.com/en/news/298033318.md) - [PXEN: Record revenues and operational milestones set the stage for accelerated 2027 development](https://longbridge.com/en/news/298172380.md) - [From tokens to outcomes: Google Cloud’s global startups head sees AI cost shift, expands Singapore push](https://longbridge.com/en/news/297858696.md) - [LUVE: Sales up 10.5%, record backlog, €100M data center deal, and upgraded guidance](https://longbridge.com/en/news/298033087.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**